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Older Americans Running Up Large Credit Card Debt

by Bill Hardekopf

A troubling survey shows that older Americans are now carrying more credit
card debt than younger people, mainly due to job loss and medical bills, not
because of a lack of financial responsibility.

The study looked at 997 middle-income households that were carrying credit
card debt for at least three months. Of the respondents, households age 50 and
older had an average credit card balance of $8,278 compared to an average debt
of $6,258 for households under age 50.

The Demos' 2012 National Survey on Credit Card Debt of Low- and
Middle-Income Households was done on behalf of AARP. The survey also
found:

Half of the older households were carrying medical expenses, such as prescription drugs and dental expenses, on their credit card accounts.

34% of the older households were using their credit cards to pay for
basic living expenses, such as groceries, utilities, and housing costs.

Job loss was a factor in running up credit card debt in nearly 25% of the
older households.

But the older households have a much bigger heart than the younger
households: 23% have taken on credit card debt to help other family members
versus 11% of the younger households.

Bill Hardekopf is CEO of LowCards.com, a site that simplifies the confusion
of shopping for credit cards. It is a free, independent website that helps
consumers easily compare credit cards in a variety of categories such as lowest
rates, rewards, rebates, balance transfers and lowest introductory rates. It
also gives an unbiased ranking and review for each card.

Dollar Stretcher, Inc. does not assume responsibility for advice given. All advice should be weighed against your own abilities and circumstances and applied accordingly. It is up to the reader to determine if advice is safe and suitable for his or her own situation.